All federal grant operations of the Rural Community Assistance Corporation (RCAC) are included in the scope of the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Compliance testing of all requirements under the Uniform Guidance were performed for RCAC. The National Priority Area 1 Training & TA for Small Drinking Water Systems, National Priority Area 4 Private Well Owners, National Priority Area 1 Managerial/Financial TA, National Priority Area 2 Technical Compliance, National Priority Area 3 Tribal, National Priority Area 4 Decentralized, Onsite, Septic, National Priority Area 5 Lagoons, National Priority Area 2 Wastewater TA & Training, Water Infrastructure Improvements for the Nation Colorado, Environmental Quality TA as directed by AZDEQ, Water Operator Training- CO, New Mexico Environmental Department, Department of Conservation and Natural Resources (a division of Environmental Protection), Clean Water TA in Nevada, Nevada Division Environmental Protection, Capacity Development Assistance HI, Idaho Service Line Inventories, Drinking Water Training and Outreach WA, and Rural Capacity Building represent major federal award programs and other grants with fiscal 2025 cash and noncash expenditures in excess of $750,000 to ensure coverage of at least 25% of federally granted funds. Actual coverage is approximately 34% of total cash and noncash federal award program expenditures.
The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes all Federal grants and contracts to RCAC that had activity during the year ended September 30, 2025. This schedule has been prepared on the accrual basis of accounting. Grant and contract revenue is recorded for financial reporting purposes when RCAC has met the qualifications for the respective grants and contracts. Grants that have expired and procurement contracts that do not have an individual Assistance Listing number (ALN), have been identified by contract number in the SEFA.
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree, in all material respects, to amounts reported within the consolidated financial statements. Federal award revenues are reported principally in RCAC's consolidated financial statements as grant revenue.
Amounts provided to sub-recipients under Federal and non-federal award programs during the year ended September 30, 2025 were as follows:
When there is more than one program under a single Federal ALN, the Schedule of Expenditures of Federal Awards totals all programs under the one Federal ALN. Occasionally, however, this total could not be conveniently displayed because all programs under one Federal ALN were not contiguous. When this occurred, this total is not shown in the Schedule, but instead, is provided below:
When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the Organization either determined that no identifying number is assigned for the program, or was simply unable to obtain an identifying number from the pass-through entity.
RCAC has a Negotiated Indirect Cost Rate Agreement (NICRA) with the U.S. Government. Accordingly, it has elected not to use the de minimis indirect cost rate of 15%.
On February 11, 2022, RCAC received a $660,000 award from the U.S. Treasury, Community Development Financial Institution (CDFI) for lending capital to be lent to qualified borrowers. $50,000 and $481,159 were disbursed in FY25 and FY24, respectively. On June 24, 2022, RCAC received a $500,000 award from the U.S. Treasury, Community Development Financial Institution (CDFI) for lending capital to be lent to qualified borrowers. $202,130 and $297,870 were disbursed in FY25 and FY24, respectively. On September 26, 2024, RCAC received a $900,000 award from the U.S. Treasury, Community Development Financial Institution (CDFI) for lending capital to be lent to qualified borrowers. All the funds were disbursed in FY25. On May 29, 2020, RCAC received a $2,755,000 award from the U.S. Treasury, Capital Magnet Fund (CMF) for lending capital to be lent to qualified borrowers. $263,091 and $919,133 were disbursed in FY25 and FY24, respectively. On September 10, 2021, RCAC received a $4,275,000 award from the U.S. Treasury, Capital Magnet Fund (CMF) for lending capital to be lent to qualified borrowers. $3,161,420 and $519,790 were disbursed in FY25 and FY24, respectively. On January 19, 2023, RCAC received a $4,275,000 award from the U.S. Treasury, Capital Magnet Fund (CMF) for lending capital to be lent to qualified borrowers. $1,499,846 and $300,000 were disbursed in FY25 and FY24, respectively. On December 19, 2024, RCAC received a $6,750,000 award from the U.S. Treasury, Capital Magnet Fund (CMF) for lending capital to be lent to qualified borrowers. As of September 2025, none of these funds have been disbursed. On September 17, 2021, RCAC received a $333,000 award from USDA Rural Utilities Service (RUS) for lending capital to be lent to qualified borrowers. $333,000 was forfeited in FY25. On August 25, 2025, RCAC received a $500,000.00 award from USDA Rural Decentralized Water Systems (DWS) for lending capital to be lent to qualified borrowers. As of September 2025, none of these funds have been disbursed. On November 28, 2020, RCAC received a $1,000,000 award from USDA Intermediary Relending Program (IRP), with a 30-year, 1% interest rate, and a maturity date of September 2050, for lending capital to be lent to qualified borrowers. $11,895 and $301,264 were disbursed in FY25 and FY24, respectively. On March 20, 2023, RCAC received a $1,000,000 award from USDA Intermediary Relending Program (IRP), with a 30-year, 1% interest rate, and a maturity date of March 2053, for lending capital to be lent to qualified borrowers. $233,645 and $651,207 were disbursed in FY25 and FY24, respectively. On November 12, 2020, RCAC received a $2,375,000 award from the U.S. Department of Commerce, Economic Development Administration (EDA) for lending capital to be lent to qualified borrowers. $1,212,320.00 was forfeited in FY25. $480,885 and $302,371 were disbursed in FY25 and FY24, respectively.